Ohio Securities Fraud Laws

Securities refer to financial investments, such as bonds or stocks. Securities fraud is generally defined as making misleading or false statements about a company or the value of its stocks in order to convince people to make financial decisions based on that information. While securities fraud isn't too difficult to understand, it requires an understanding of securities regulations, which are detailed and fairly complex.

Both state and federal laws govern securities. On the federal level, the U.S. Securities and Exchange Commission is responsible for enforcing federal securities laws. In Ohio, the Department of Commerce provides information and resources relating to securities to industry professionals, investors, and the general public. There are several acts that are prohibited under Ohio's laws governing securities, and the penalties for violating the laws will vary depending on the amount involved. It's important to note that while the penalties will vary for violations, all types of securities fraud are classified as felonies in Ohio.

Ohio Securities Fraud Laws Overview

Below you will find key provisions of securities fraud laws in Ohio.

Statute(s)

Ohio Revised Code Title XVII. Corporations-Partnerships Section 1707.44 (Prohibited Acts)

What's Prohibited?

Ohio's securities fraud laws are very detailed and prohibit several acts. Some of the prohibited acts include:

  • Knowingly making a false representation regarding a material and relevant fact to register securities or transactions (or exempt them from registration), or to sell securities in Ohio.
  • Knowing that the statement is false (and with purpose to deceive) making, issuing, or publishing a statement as to a security's value or as to the issuer's financial condition.
  • Knowingly influencing or misleading any person engaged in the preparation, compilation, review, or audit of financial statements to be used in the purchase or sale of securities with the purpose of making financial statements misleading.
  • With purpose to deceive, making, recording, or publishing a report of any transaction in securities that is false.
Charges and Penalties

The charges for violating Ohio's securities fraud laws are outlined in Section 1707.99. While the charges range from a fifth degree felony to a first degree felony depending on the value of funds or securities involved, the penalties for conviction under Ohio's securities fraud laws can result in imprisonment and fines.

Related Statute(s)

Ohio Revised Code Title XXIX. Corporations Partnerships Section 1707.01, et seq. (Securities)

Note: State laws are always subject to change through the passage of new legislation, rulings in the higher courts (including federal decisions), ballot initiatives, and other means. While we strive to provide the most current information available, please consult an attorney or conduct your own legal research to verify the state law(s) you are researching.

Ohio Securities Fraud Laws: Related Resources

If you'd like more information related to this topic, please click on the links below:

Get Legal Help with Your Securities Fraud Case in Ohio

While financial crimes may not seem as serious as other crimes, such as homicide, a conviction can result in serious consequences. If you've been charged with securities fraud in Ohio, it may be in your best interest to contact a local criminal defense attorney who can help to develop evidence in your defense.

Next Steps: Search for a Local Attorney

Contact a qualified attorney.